Gold prices fell to a one-week low on Friday as elevated oil prices raised inflation concerns, strengthening expectations of higher interest rates and pushing U.S. Treasury yields close to their highest level in nearly a year.

Spot gold extended its decline for a fourth consecutive session, falling 1.5% to $4,579.19 per ounce as of 06:31 GMT, its lowest level since May 6. For the week, gold was down nearly 3%.

Technical Analysis: Corrective Scenario Takes the Lead

From a technical perspective, the current decline has not yet fully invalidated the previous bullish scenario, but it has significantly weakened its probability. Instead, the market is more likely still moving within a larger corrective structure.

In this scenario, gold continues to move within the decline from the white A wave toward the white B wave, with a more complex corrective structure than initially expected. The fact that prices continue to weaken after short-lived rebounds suggests that sellers remain in control in the short term.

The target of this corrective move could bring gold back toward the $4,000 – $4,430/oz area, which is considered the next key support zone within the larger structure.

On the other hand, if gold unexpectedly reverses sharply and breaks above $4,717/oz, the bullish scenario based on the “million-dollar” pattern mentioned in previous analyses would return and become the preferred scenario.

Conclusion

After failing to sustain its recovery momentum, gold is showing signs of returning to a broader corrective trend. In the short term, pressure from inflation, Treasury yields, and a stronger U.S. dollar remains unfavorable for the precious metal.

Until clearer confirmation emerges that the corrective phase has ended, the market is likely to continue prioritizing downside moves and strong volatility in the near term.

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